7 min read A whitepaper is essentially a long form of content that is used by projects, especially to promote their initial coin offering (ICO) and raise more funds. In the web 3 ecosystem, the purpose of whitepapers is to establish thought-leadership and authority in their space, to communicate the inherent potential of the project, or to convince people to consider subscribing to their ICO.

Whitepapers are also used to introduce a new idea or a blockchain-based solution to solve an existing problem, or to boost awareness of the project among the audience. But the most significant use case of whitepapers in web 3.0 is to make ICOs successful.

ICOs are a crucial step in the development of a web 3 project and whitepapers allow web 3 projects to communicate their intrinsic value to the investors and convince them of their value and their prospects as an investment.

A whitepaper is similar to an ebook in terms of length, and the type of content it contains, but has some clear distinctions that make it slightly different:

– It is written for a more technical audience and has a formal tone. It uses technical terms and jargon that are difficult for the general audience to grasp.
– It is a heavily researched document and utilizes visuals, statistics, graphs, and reports to back the explanation.

A well-written whitepaper allows web3 projects to make a strong statement about themselves and spread awareness in the marketplace. Its primary goal is to convince the audience that the project is worth their investment and that the prospects of the project are bright and imply a potential upside in the forthcoming days.